Several mortgage lenders in the UK have cut their interest rates for loans after the Bank of England (BoE) warned that it would be more difficult for borrowers to obtain loans.
The Post Office reduced its mortgage rates by up to 0.34 percent. Its five-year fixed-rate mortgage now stands at 4.55 percent with a £995 set-up fee for borrowers with a 20 percent deposit or equity.
HSBC also reduced its fixed rates, while the Yorkshire Building Society has launched a five-year fixed loan for those borrowers with 40 percent equity at 3.89 percent with a £995 fee.
The BoE said major lenders in the country were planning to implement more rigid criteria on mortgage lending, including requiring borrowers to pay higher deposits.
Meanwhile, the Financial Services Authority said it wanted mortgage lenders to have tougher checks done on interest-only mortgage borrowers to make sure that they are doing adequate preparations to repay the capital.